Iceland Hotels: Where to stay in Iceland on a ring road trip

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The best part of Iceland is its wonderful landscape and natural beauty. Where else can you walk over lava fields and hike over pristine landscapes with stunning water streams flowing. Where else do you drive through coastal scenic routes with magnificent waterfalls nearby and enjoy vast black sand plains. Where else do you indulge in adventures like glacier hiking, ice caving, whale watching, and more. We had an epic road trip in Iceland in summer. There were a lot of Iceland hotels that we stayed along the ring road, and that is required to experience what this beautiful country offers.

Here are my recommended hotels in Iceland, some boutique, some mid-range and one luxury stay.

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Iceland Hotels Overview

These were our stops for the 12 day ring road itinerary. –

Grindavik (1 night) – Hellnar in Snaefellsnes Peninsula (1 night) – Akureyri (1 night) – Myvatn (2 nights) – Hofn (1 night) – Vik (3 nights) – Nesjavellir (2 nights) – Reykjavik (1 night)

You can do it counter-clock wise as well. Reykjavik to Nesjavellir, then Vik town, Hofn, Myvatn, Akureyri, Hellnar and finally Grindavik.

As you can note, there is a lot of moving about in an Iceland road trip. For those who are doing a shorter trip, say a week, and want fewer bases, can choose to stay for 3 nights in Reykjavik and 3 nights in Vik town on the south coast. Combining Reykjavik, Golden Circle route, and the South Coast is the popular option for a first-time visit to Iceland for 5-7 days.

Northern Lights Inn, Grindavik

Destination

On landing at Keflavik Hotel, we chose to pick-up our rental car and drive to Grindavik. The destination was the famous Blue Lagoon, a geothermal spa situated in a dramatic lava field on the Reykjanes Peninsula. Blue Lagoon is located just 20 minutes from Keflavík International Airport and 40 minutes from Reykjavík, so you can choose to visit this renowned spa from the capital city as well.

Enjoying the Blue Lagoon in the late evening hours.

We chose to stay in Grindavik at Northern Lights Inn. It allowed us to go to Blue Lagoon during late evening hours. It is open until 10 pm during summer months and the late evening hours were peaceful and less crowded. The geothermal spa was the perfect antidote to fatigue and jet lag from our long flight.

Another option in Grindavik, if you are looking for luxury hotels in Iceland, is at The Retreat at Blue Lagoon

Rooms

I highly recommend the Northern Lights Inn & Max’s Restaurant. This family-run hotel is walking distance from the Blue Lagoon. While we visited Iceland in June, this hotel is also a popular base for viewing the Aurora Borealis in Iceland during winter months.

The rooms are clean, spacious for a night’s stay, and geothermal-heated. The down comforters were cosy to tuck in at nighttime. Every room has walk-in shower, TV, electric kettle, seating area and free WiFi.

Hotel Amenities & Activities

The most famous activity near the hotel of course is the Blue Lagoon. Though the hotel has its own wellness spa with 3 saunas, a free fitness room, and a relaxation therapy pool.

Fresh arctic char served at Max’s restaurant

But we also enjoyed lounging in the large and well-designed lounge area, reading, chatting, playing board games in the evening. The on-site Max’s restaurant serves locally-sourced Nordic cuisine (fish, free-range lamb). We enjoyed the views over the Reykjanes Penisula’s moss covered, lava field with floor-to-ceiling windows.

There is also an exclusive Airport Taxi service at an additional charge to and from Keflavík International Airport.

Booking Information: Northern Lights Inn

Fosshotel, Hellnar

Destination

The small village of Hellnar was our base for 2 days in Snaefellsnes Peninsula. Hellnnar is located in Snaefellsnes Peninsula on the western coast of Iceland. Lovely scenery with beautiful mountains and sea-side villages, volcanoes and waterfalls, beaches and lava fields, it is often termed as Iceland in miniature.

Glymur, the second-tallest waterfall in Iceland, can be accessed only via a hike

The area is most famous for Kirkjufell, the ‘most photographed mountain in Iceland’.

Rooms

We reached Fosshotel in the evening after a long day hiking to Glymur waterfall. This 3-star eco-certified country hotel is located directly beneath the majestic Snæfellsjökull Glacier. It is well-located, making a prime base for exploring nearby landmarks like Arnarstapi, Gatklettur Arch Rock, and Kirkjufell.

Our room was not in the main building off the hotel, but in an annexe. It was clean and adequate for our 1-night stay. The free self-parking was close to the annexe building. The 39 rooms include complimentary Wi-Fi.

Hotel Amenities & Activities

View of Snæfellsjökull outside our cabin.

Snæfellsjökull National Park Visitor Centre is next to the hotel. And you can find all the information on hiking trails and attractions in this area. The on-site restaurant serves traditional Icelandic dinners and organic wines and beers. The breakfast, the next morning was decent as well. The library lounge is quaint with panoramic views of the ocean.

Booking Information: Fosshotel Hellnar

K16 Apartments, Akureyri

Destination

Akureyri, also referred to as the Capital of the North, is a charming town. It is the gateway to North Iceland’s main attractions. We reached Akureyri late in the evening from the Snaefellsnes Peninsula and had little time to explore the town itself. It seemed quite buzzing with little galleries, pubs and restaurants.

Our apartment was at a walking distance from the Akureyri Church.

Rooms

K16 Apartments is located in the heart of Akureyri city center. This 3.5 start accommodation is a convenient base and is at a walking distance from the Akureyri Church.

The first thing that you note about the apartment is the size. Yes, hotels in Iceland have smaller rooms than we are used to. So the 18 individually decorated rooms featuring well-equipped kitchenettes (stovetops, full refrigerators, microwaves, ovens), down comforters, private bathrooms with rainfall showers, are great for a family. There is also a 55-inch Smart TVs and free Wi-Fi in each room.

Hotel Amenities & Activities

Apart from the on-site parking, we didn’t use any of the facilities like laundry services and luggage storage. There is no on-site restaurant but that’s hardly an issue in Akureyri.

Booking Information: K16 Apartments

Vogafjós Farm resort, Myvatn

Destination

Many folks make Akureyri as their base to explore North Iceland attractions. Very doable, but we chose the Myvatn area as the next base in our itinerary. Lake Myvatn area is one of the beautiful places in Iceland. It has many attractions – geothermal springs, volcano craters, a serene lake, lava fields and more. And finally, the remote Asbyrgi canyon, which makes for a great day trip hiking the canyon rim.

There is the beautiful town of Husavik, extremely popular for whale watching. Another must-do highlight in North Iceland is Dettifoss, Europe’s largest waterfall.

We stayed at a working farm resort in Myvatn.

Rooms

Vogafjós Farm Resort is a family-run property located on the eastern shore of Lake Myvatn. We reached this resort after spending most of the day in Husavik, I recommend taking this 3-hour Whale Watching tour with North Sailing. This is a working farm with a large cowshed as part of the reception area.

There are 24 rooms with free parking, private patios, showers, and underfloor heating. If you visit Iceland in summer months, be warned that Lake Myvatn area has tiny ticks all over (not mosquitoes). And the resort does not escape these annoying creatures.

Hotel Amenities & Activities

The Cowshed Restaurant is excellent, we celebrated my daughter’s birthday here over a lovely meal. You can enjoy farm-to-table Icelandic fare like smoked trout, lamb shank, and homemade mozzarella. While you eat, you can watch cows being milked through a large glass window (I admit I did not care for this part!). A traditional Icelandic breakfast is served at the Vogafjós Farm restaurant which is excellent as well.

The cowshed is part of the reception area!

Guests can relax in a hot tub located at the guesthouse or in the geothermal waters of the Earth Lagoon Mývatn, available nearby for an additional fee.

Booking Information: Vogafjós Farm Resort

Milk Factory, Hofn

Destination

Hofn, a city in south-east Iceland was a quick stop on our road trip. We had spent most of the day exploring the fjord town of Seydisfjordur. It started pouring like crazy when we headed to Hofn, and it was dinner time when we reached Milk Factory. We had no time to explore the town that evening or the next day.

Milk Factory, is a former milk factory that now offers accommodation in Höfn.

Rooms

We loved our room in this bed and breakfast facility. Lots of space with gorgeous windows. My daughter had a loft with a large bed all to herself. Perfect for families. All rooms have a simple, clean decor, come with a TV and a private bathroom. Certain rooms have views of the mountain or garden.

Hotel Amenities & Activities

I like the breakfast here. The staff was friendly throughout our stay. Guests can enjoy various activities in the surroundings, including golfing, horse riding and cycling. As I said before, we did not get much time here to try any activity.

Booking Information: Milk Factory

Hotel Kria, Vik

Destination

Vik i Myrdal (or just Vik) on the south coast is the most popular base. We made it our home for the 3-day South Coast itinerary. This sea-facing town in south Iceland that has many attractions nearby. Reynisfjara, the famous black sand beach in Iceland, is in Vik town. The famous waterfalls on the ring road, Seljalandsfoss and Skogafoss, are close to Vik.

We stayed at Hotel Kria which has an excellent location. When you cross the road from the hotel, there are petrol pumps, an Icewear outlet and several restaurant options.

Rooms

This 3-star modern hotel features cozy rooms, complimentary breakfast, and the on-site Drangar Restaurant. The rooms are equipped with everything you would expect from a fancy, modern hotel – complimentary WiFi, LCD, Satellite TV, hairdryer, clothing rack, extra pillows, and a kettle with tea and coffee.

Hotel Amenities & Activities

We had great Icelandic fare at the Drangar Restaurant, with gorgeous views. The breakfast options are varied as well. The property has an on-site bar with a cozy ambience and excellent cocktails.

We made use of the on-site free parking for all 3 days of our stay.

Booking Information: Hotel Kria

ION Adventure, Nesjavellir

Destination

We chose to stay at Nesjavellir to be close to all the Golden Circle Route stops: Thingvellir national park, Geysir geothermal area and Gullfoss waterfall. Manny folks chose to drive to the Golden Circle route from Reykjavik and then drive further to Selfoss town. We drove from Vik to Nesjavellir after finishing our south coast leg of the trip.

This property is in the middle of nowhere…or so it feels.

ION Adventure is located less than an hour east of Reykjavik. It is a popular spot for those who like privacy and a peaceful vacation.

Rooms

There are 45 rooms in this property. The standard rooms are modern and clean.

We had booked a junior suite to accommodate an extra bed for our teenage daughter. The suite was luxurious, we enjoyed the extra-large bathroom with a separate shower area. There was beautiful view of the lava fields outside. A king size bed with cupboards and all facilities in the room. Extra seating area that could be used for the third bed.

Hotel Amenities & Activities

Silfra restaurant serves Nordic cuisine with emphasis on sourcing local produce. We enjoyed our dinner. After dinner, we enjoyed the dramatic views at the Northern Lights Bar. This large bar area has floor-to-ceiling windows that make the outside natural landscape a part of the hotel. I can only imagine what the view would be in deep winter with the aurora borealis dancing in the sky!

The hotel has a spacious spa with various treatments options, but the best amenity was the outdoor hot pool (which is free to use for hotel guests!)

Booking Information: ION Adventure

Fosshotel Baron, Reykjavik

Destination

The northernmost capital city of the world is modern, joyous and quirky. You will definitely start or end your Iceland trip here. The best things to do in Reykjavik can be covered over a day. We enjoyed the iconic Hallgrimskirkja Church, Sun Voyager statue, Harpa Concert Hall, and Perlan museum in a day. Reykjavik has a wealth of galleries and museums. And a vibrant night life and cool street art.

The hotel is close to Laugavegur, the cool dining / bar street

We chose to base ourselves in downtown Reykjavik for our last night in Iceland. Fosshotel Baron is close to the main promenade facing Faxaflói Bay. The location of this hotel is convenient, it is steps from Laugavegur street and a 10-minute walk to city attractions.

Rooms

This 3-star property with 120 rooms is adequate for a 1 night stay. The family suite with an extra bed for my daughter was very comfortable. The en-suite rooms and apartments are equipped with satellite TV and tea/coffee facilities.

Hotel Amenities & Activities

Amenities include free Wi-Fi, a breakfast buffet, an on-site bar, and an airport shuttle stop right outside. Plus the free car parking is useful in the city (but this can get full quickly).